Clogged, creaking airports hamper SE Asia carriers

By Harry Suhartono
SINGAPORE, March 25 (Reuters) - It's a scene repeated
endlessly at most of Southeast Asia's main airports - planes
forced to circle overhead or idle on the tarmac and travellers
stuck in serpentine queues at immigration desks, security
checkpoints and baggage carousels.
And it's likely to get worse in capitals like Kuala Lumpur,
Jakarta, Bangkok and Manila in years to come as overcrowded
airports and outdated infrastructure are twinned with a huge
spike in the number of aircraft in the region.
Southeast Asian carriers have ordered $47 billion worth of
aircraft for the coming decade but the deals could be under
threat because of the inability of airports to keep pace. That
could be a blow to manufacturers like Boeing and Airbus
.
"You can buy as many aircraft as you like but if the
infrastructure does not keep up then you are going to see a
degraded service that may prevent you from executing plans to
grow the airline," Andrew Herdman, director general of the
Association of Asia Pacific Airlines, told Reuters.
The problem could force low-cost carriers such as Malaysia's
AirAsia Bhd and Indonesia's privately held Lion Air -
the world's biggest buyers of passenger jets - to delay or even
cancel some orders from Airbus and Boeing.
Jakarta's Soekarno-Hatta International Airport now serves
more than 51 million passengers a year, more than twice its
design capacity when it was built in the mid-1980s.
Bangkok's main Suvarnabhumi Airport is often beset by
two-hour immigration queues and is running over capacity less
than six years after it opened, which led Thailand's government
to encourage low-cost carriers to move to the old Don Muang
Airport to help ease congestion.
Passengers can wait for hours at Kuala Lumpur's overcrowded
budget terminal, the hub for AirAsia. After clearing immigration
lines that can be at least 50 people long, the walk to the plane
at the tarmac can be hundreds of metres with only a strip of
corrugated steel overhead as cover against the elements.
With pressure from AirAsia and scenes of chaotic check-ins,
government-linked operatorMalaysia Airports is
rushing to complete another budget terminal that is due to be up
and running by April 2013.
Projected construction costs have nearly doubled to 3.9
billion ringgit ($1.27 billion) as the planned capacity of the
new airport has been expanded to 45 million passengers a year
from an initial plan of 30 million.
TIME IS MONEY
Jakarta's airport is infamous for planes sitting for nearly
an hour on the tarmac before take-off or circling overhead as
they await their turn to land. One-hour flights between
Singapore and the Indonesian capital can easily drag to two
hours or more because of the overcrowded runway.
The hundreds of bankers and executives who fly regularly
from Jakarta to Singapore on Monday mornings need to leave home
in the dark to catch a 6 a.m. flight and often they still get
caught in traffic jams on the toll road to the airport.
That has led to tense times for airline executives dealing
with what they politely refer to as "influential" passengers who
get to the airport late or get stuck in traffic.
Airline sources said these passengers do not hesitate to
call them or even the chief executive on their mobile phones to
ask for the plane to wait for them.
"It is a common problem," one of the sources said. "We could
never entertain these kinds of requests unless they are the
president or the vice president of Indonesia. But some customers
can be quite impolite and scream at us."
The number of low-cost carriers (LCC) and their routes have
expanded rapidly in Southeast Asia over the last 10 years.
Analysts and industry executives see more growth ahead due to a
lack of reliable alternatives and strong economic growth.
"Ten years ago, the airports in this region would probably
not have foreseen that LCC demand could be as strong as it is
today," Chin Yau Seng, chief executive officer of
Singapore-based budget carrier Tiger Airways, told
Reuters.
Airport congestion makes it tougher for carriers to keep
their on-time performance and pushes up operating costs as
planes waste fuel waiting to take off or land.
"If this problem persists for the long run, airlines in
general will have to take into account all the additional costs
that they have to incur and pass them on to customers," Edward
Sirait, a director at Lion Air, told Reuters.
"If customers cannot accept those additional costs then
airlines, whoever they are, will have to rethink their
investment decisions and spending."
Lion recently firmed up an order for 230 Boeing 737s worth
$22.4 billion, eclipsing the record for the world's biggest
commercial aircraft deal set by AirAsia when it signed up to buy
200 Airbus A320neo jets for $18 billion.
Despite the growth and big orders, Southeast Asia remains a
market that has been under served by carriers.
Con Korfiatis, vice president of Garuda Indonesia's
budget carrier Citilink, said only 300 single-aisle
jets serve the country's population of 230 million, compared
with 3,000 in the United States, which has 310 million people.
Boeing sees Asia-Pacific carriers as the biggest buyers of
planes over the 20-year period to 2030 as they are expected to
acquire 11,450 passenger jets valued at $1.5 trillion - more
than a third of global demand.
RACING AGAINST THE CLOCK
A number of airports in Southeast Asia are expanding but
some industry watchers say the efforts may not be enough to keep
up with additional capacity and demand.
Standard & Poor's analyst Shukor Yusof said Indonesia and
the Philippines are among the laggards in developing facilities
for airlines, while Singapore and Malaysia tend to move ahead.
"Malaysia has done a fairly good job in managing and
operating various airports," he said. "Indonesia certainly lacks
the infrastructure to meet the increase in capacity with its
domestic carriers expanding and acquiring new aircraft."
Singapore's Changi Airport plans to build a fourth terminal
that will boost total capacity to 82 million passengers a year
from the current 73 million when it is completed in 2017.
Despite Changi's reputation for planning ahead, the Center
for Asia Pacific Aviation (CAPA) said the fourth terminal might
not be enough to meet the expected surge in air travel.
"A third runway and a fifth terminal will eventually be
needed for Singapore to maintain its status as a leading hub,"
CAPA said in a recent report, adding those two things would have
to be ready by the end of this decade.
Changi's average annual passenger growth has been 12 percent
in each of the past two years, far higher than the average for
the past seven years of 8 percent.
That momentum carried on in January with an annual growth
rate of 12.1 percent and in February with 11.2 percent.
"At 12 percent per annum growth rate, Changi would reach the
post-Terminal 4 capacity figure of 82 million in 2016, just as
Terminal 4 finally opens. Even based on 8 percent rate, a fifth
terminal would be needed by the end of this decade," CAPA said.
At Jakarta's Soekarno-Hatta, a major overhaul is in the
works. It introduced a third terminal last year as it looks to
boost capacity to 62 million passengers per year by 2014, a
substantial jump from the 51 million the clogged airport now
handles.
It also plans a third runway and fourth terminal that could
potentially triple its capacity, measured by aircraft movement,
but the plan has been hindered by land acquisition issues that
might force authorities to build an entirely new airport
elsewhere.
In the meantime, travellers must just do their best.
"Your job as a passenger who is flying out from Jakarta is
as complicated as the pilot," said one executive at a European
investment bank who asked not to be identified.
"You need to check the weather, the traffic warnings on
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"You can buy as many aircraft as you like but if the infrastructure does not keep up then you are going to see a degraded service that may prevent you from executing plans to grow the airline,"

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AirAsia Zest Plane 'Overshoots Airport Runway' In the Philippines

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AirAsia Zest Plane 'Overshoots Airport Runway' In the Philippines

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"Gateway Asia" 2030 Manila in Philippines.

Manila 2030
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As one of the world's most densely populated capitals, Manila struggles with insufficient transport infrastructure. This can slow down economic growth and hinder economic potential. A large-scale transport plan for Manila Bay will help solve the problem by interconnecting air- and seaport facilities.
With a GDP growth of 7% per year, the Philippines is among the fastest-growing economies in Southeast Asia. Yet much of the Philippines' economic and social potential remains untapped, and the country could play a much stronger role in the global village. Experts and politicians agree that a clogged infrastructure is at the root of the problem.
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Pope Francis Visit Philippines Update
The Papal Visit Itinerary
The ItineraryInfographicVillamor Air BaseMalacañan PalaceArchdiocese of Manila/Manila CathedralMall of Asia ArenaArchdiocese of PaloPope Francis Center for the PoorPalo CathedralPontifical University of Santo TomasRizal Park
His Holiness Pope Francis will bring his message of “mercy and compassion” to at least 11 different venues in the province of Leyte and Metro Manila during his Apostolic Visit to the Philippines on January 15-19, 2015.
Pope Francis is expected to arrive in Manila from Sri Lanka, the first leg of his Asian trip, by plane past 5 p.m. on January 15, and will go on a motorcade to his official residence in the Philippines. The following morning, January 16, Pope Francis will be officially welcomed by President Benigno S. Aquino III at Malacañan Palace on J. P. Laurel Street in Manila. The Pope will also meet Philippine authorities and members of the diplomatic corps.
After the Palace reception, Pope Francis will go on a motorcade to the Cathedral-Basilica of the Immaculate Conception (Manila Cathedral) in Intramuros for a Mass with bishops, priests, and women and men religious. Later, he will have an encounter with families at the Mall of Asia Arena in Pasay.
In Leyte Province in Eastern Visayas, Pope Francis will visit the Archdiocese of Palo. He will offer Mass near Tacloban Airport in the morning of January 17 and will have lunch with the poor and survivors of natural calamities at the residence of the Archbishop of Palo. Afterwards he will bless the Pope Francis Center for the Poor in Palo, and visit the Cathedral of Our Lord’s Transfiguration (Palo Cathedral) to meet with priests and women and men religious.
On January 18, the Pope will meet religious leaders and young people at the Pontifical University of Santo Tomas in Manila. In the afternoon, he will go on a motorcade for the Concluding Mass at Quirino Grandstand in Rizal (Luneta) Park.
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Thursday 15 January 2015
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17:30 MEETING with the FAMILIES at the Mall of Asia Arena in Manila
Saturday 17 January 2015
08:15 Departure by plane from Manila for Tacloban
09:30 Arrival at the airport of Tacloban
10:00 HOLY MASS near Tacloban International Airport
12:45 Lunch with some of the survivors of typhoon Yolanda at the Archbishop’s Residence in Palo
15:00 Blessing of the Pope Francis Center for the Poor
15:30 MEETING with the Priests, Women and Men Religious, Seminarians and Families of the Survivors at the Cathedral of Palo
17:00 Departure by plane for Manila
18:15 Arrival at Villamor Air Base in Manila
Sunday 18 January 2015
09:45 Brief Meeting with the Religious Leaders of the Philippines at the Pontifical University of Santo Tomas in Manila
10:30 MEETING WITH THE YOUTH at the Sports Field of the University
15:30 HOLY MASS at Rizal Park in Manila
Monday 19 January 2015
09:45 Leave Taking Ceremony at the Presidential Pavilion of Villamor Air Base in Manila
10:00 Departure by plane from Manila for Rome
17:40 Arrival at the airport of Rome/Ciampino
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